AMMO, Inc.: Nasdaq Issues Additional Deficiency Notice due to Late Filing of Form 10-Q
On February 19, 2025, AMMO, Inc. (Nasdaq: POWW, POWWP) (“AMMO” or the “Company”), the leading online marketplace for firearms and shooting sports industries and a significant producer of high-performance ammunition and components, received an additional deficiency notification letter from The Nasdaq Stock Market LLC (“Nasdaq”). This letter came as a result of AMMO’s failure to timely file its Quarterly Report on Form 10-Q for the quarter ended December 31, 2024.
Background
The Nasdaq Listing Rules require companies listed on Nasdaq to file all required periodic financial reports with the Securities and Exchange Commission (SEC) in a timely manner. In this case, AMMO failed to meet this requirement and filed a Form 12b-25 Notification of Late Filing with the SEC on February 10, 2025, explaining the reasons for the delay.
Impact on AMMO
The Nasdaq deficiency notice is a significant development for AMMO, as it may result in the Company being delisted from the exchange if it does not regain compliance within a specified period. The notice indicates that the Company is not in compliance with Nasdaq Listing Rule 5250(c)(1), which requires timely filing of all required periodic financial reports. AMMO has 60 calendar days from the receipt of the notice to submit a plan to regain compliance, which must include the anticipated date by which it will file the Form 10-Q.
Possible Consequences for Shareholders
If AMMO fails to regain compliance with the Nasdaq Listing Rules, it may face several consequences, including:
- Delisting from the Nasdaq exchange
- Increased costs and potential loss of investor confidence
- Limited liquidity and trading opportunities for shareholders
- Possible negative impact on potential future financing opportunities
Impact on the Industry and the Market
The late filing of the Form 10-Q by AMMO could also have broader implications for the firearms industry and the financial markets. The firearms sector has been under increased scrutiny in recent years due to regulatory changes and public debates over gun control. Any negative news related to a major player in the industry, such as AMMO, could lead to increased volatility in the sector and potential investor uncertainty.
Company’s Response
AMMO has not yet issued a public statement regarding the Nasdaq deficiency notice. However, in its Form 12b-25 filing, the Company stated that it is working diligently to complete the Form 10-Q as soon as possible and intends to file it as soon as practicable. AMMO also noted that it is cooperating with the SEC and Nasdaq in their review of the matter.
Conclusion
The receipt of a deficiency notice from Nasdaq due to the late filing of a Form 10-Q is a serious matter for any publicly traded company, and AMMO, Inc. is no exception. The potential consequences for the Company, its shareholders, and the industry as a whole could be significant. AMMO must act quickly to regain compliance with Nasdaq’s Listing Rules and address any underlying issues that led to the late filing. In the meantime, investors and industry observers will be closely watching the situation unfold.
AMMO, Inc. is a leading player in the firearms industry, and any negative news related to the Company could have broader implications for the sector. As the situation develops, it is important for investors to stay informed and seek professional advice before making any investment decisions.
